The Sensex was up 517.78 points or 1.9 percent at 28067.31 and the Nifty was up 162.70 points or 1.9 percent at 8518.55. About 1795 shares have advanced, 1057 shares declined, and 129 shares are unchanged.

The rupee resumed lower at 65.19 as against yesterday's closing level of 65.10 and dropped further to 65.34 on initial dollar demand from banks and importers in view of a firm dollar in the overseas market. However, it recovered from initial losses to 65.05 before quoting at 65.15 at 1218 hours.

"OTT players will have to roll out separate packages for VoIP (voice over internet protocol) services which shall eventually be charged to the subscribers," India Ratings and Research said in a note on Friday.